Single Touch Payroll Phase 2
Single Touch Payroll Phase 2 is coming: This is what you need to know!
What is STP Phase 2, and how is it different from phase 1?
In 2019–20 the Government announced that Single Touch Payroll (STP) would be expanded to include additional information.
The expansion of STP, also known as STP Phase 2, will reduce the compliance burden for employers and individuals.
When does it come into affect?
Although the official start for STP Phase 2 reporting is 1 January 2022, Tax Agents, BAS Agents and Business Owners who use Xero will be covered by a deferral until 31 December 2022.
If you aren't using Xero, don't worry, STP Phase 2 rollout will be flexible, reasonable and pragmatic based on your business' readiness and individual circumstances.
What additional information will be included?
STP Phase 2 will require businesses to report additional information to the ATO. The new information that will be reported includes:
Tax file number declarations.
Reason for Employee Termination.
Employment basis.
Income stream collection.
Salary sacrifice.
Lump-sum E payments.
What isn't changing?
While you'll need to report additional information in your STP report, many things that will stay the same, such as:
The way you lodge
The due date
The types of payments that are needed
Tax and super obligations
End of year finalisation requirements.
